Identify that account to which the share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his or her death.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Profit and Loss Suspense account
A partner who dies during the year is entitled to his share of profit from the last balance sheet date to the date of death. The profit for the year is not yet known, so the share is credited to his capital account and debited to a Profit and Loss Suspense Account, which is later closed to the gaining partners in their gaining ratio.
Why the other options are incorrect
Option (1) His capital account — Incorrect. His capital account is credited with the share, not debited.
Option (2) Profit and loss account — Incorrect. The accounts for the year are not yet closed on the date of death, so the share is held in a suspense account.
Option (4) Trading account — Incorrect. The Trading account shows gross profit only; it does not record partners’ shares.
NCERT (2026-27 edition):
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